Oil trust report deadline extended

The Adrian City Commission voted 6-1 Monday to give city attorney Sarah Osburn until the commission’s first meeting in January to report on options for the city’s oil royalties trust fund.

Commissioner Jerry Gallatin voted against authorizing the extension.

The commission had voted 5-2 Nov. 18 to instruct Osburn to investigate options related to the trust, which the former city commission approved on a 5-2 vote Oct. 7.

Mayor Jim Berryman said he wanted to give Osburn the extension because she has been busy with other matters for the past two weeks.

The trust was set up to receive all the city’s oil royalties for 15 years, with no money to be withdrawn until May 2016. The trustee would pay the city up to 5 percent of the trust value annually after that.

During his election campaign this fall, Berryman opposed the trust, and he has said he would like to see if the city can find a way to use some of the oil royalties now. Three new commissioners also were elected Nov. 5.

Gallatin, who voted in October to establish the trust, asked what would happen if Osburn’s legal opinion is that no change can be made to the trust.

“Are we going to look for more legal opinions?” Gallatin said.

“If (the opinion) comes back and says there’s nothing we can do, we have to live with that,” Berryman said.

The commission also voted 3-2, with two abstentions, to authorize the city’s special counsel to accept a proposal to dismiss a suit by Berryman against the city over the oil royalties trust fund, including an agreement not to pursue attorney fees or costs from Berryman.

Berryman and commissioner Julie Berryman Adams — who is Berryman’s daughter — abstained from the vote. Commissioners Jeff Rising, Tom Faulhaber and Andrew Munson voted for the resolution. Gallatin and commissioner John Dudas voted against it.

The proposed dismissal was sent to the city’s special counsel, Foster Swift Collins & Smith of Lansing, Grand Rapids and other cities, by Berryman’s attorney after Berryman was elected.The city commission has to agree to the dismissal for the court to accept it.

“I think Mr. Berryman should pay the fees,” Gallatin said before the vote.

Berryman did not participate in the discussion.

Osburn said she had been told by one of the special counsel attorneys that the fee, for which the city will be responsible, would not be more than $2,000.

Osburn also said that voting to not pursue attorney fees would not set a binding precedent.During public comment, Adrian resident Don Taylor criticized the commission’s decision.